Overview of the InâDepth Analysis
The European Parliamentâs Policy Department for Transport, Employment and Social Affairs (CASP) commissioned this comprehensive study, authored by Professor Claire Colomb, a Land Economy expert at the University of Cambridge, together with policy analysts and researchers from the EP. The analysis was requested by the Special Committee on the Housing Crisis (HOUS) to assess how shortâterm rentals (STRs) affect affordable housing across EU member states and to evaluate the regulatory landscape.
Policy Context and Legislative Framework
The report examines two principal EU legal strands influencing STR regulation: the 2000 EâCommerce Directive, updated by the 2022 Digital Services Act, governing digital platforms, and the 2006 Services Directive, which frames marketâaccess rules for STR operators. It also details the newly adopted Regulation (EU) 2024/1028 on data collection and sharing, set to improve data availability for enforcement from May 2026 onward.
Scale of the ShortâTerm Rental Market
In 2024, Eurostat recorded 854 million guestânights booked through the four largest platforms in the EU, up from 719 million in 2023. By midâ2025, Airbnb listed over 8 million active units in more than 150 000 cities worldwide, with Europe hosting just over 4 million listings and a peak demand of 48.5 million guestânights in June 2025. The most active markets remain France, Spain and Italy, while Eastern and Northern Europe showed the strongest growth rates.
Economic Impact on Housing Supply
Empirical evidence across cities shows STR growth can reduce longâterm rental stock. In Berlin, a 1âunit increase in nearby commercial Airbnb listings lowered longâterm supply by 0.2â0.4 units and lifted average rents by 1.3â2.4 %. In Barcelona, neighborhoods with high STR density experienced rent hikes of up to 7 % and price increases of 19 % (2012â2016). Similar price pressures are documented in Paris, Milan, Lisbon and Athens, where STR concentration correlates with 3â4 % higher property values per 1 % rise in STR share.
Variety of Regulatory Instruments
The analysis identifies twelve common tools used by local, regional and national authorities, ranging from marketâaccess measures (authorisation licences, time caps, quantitative and spatial restrictions, primaryâresidence obligations) to marketâoperation rules (registration, guest reporting, safety standards, tourist taxes). Implementation differs widely: Barcelona enforces a âcontainment areaâ quota, Amsterdam caps rentals at 30 days per year, while Berlinâs 2016â2018 ban on wholeâunit STRs temporarily removed 8 105 units from the market.
Enforcement Challenges
Four major obstacles limit regulatory effectiveness: (1) lack of precise STR data, (2) insufficient human and technical resources for monitoring, (3) limited cooperation from platforms despite EU obligations, and (4) frequent litigation that delays or overturns local measures. The new 2024/1028 regulation aims to address data gaps by requiring member states to create national registration schemes and a Single Digital Entry Point for platformâtoâauthority data exchange, but uncertainties remain around selfâdeclaration verification and randomâcheck procedures.
CrossâBorder Implications and EU Coordination
Because platforms operate across borders, the âcountry of originâ principle can hinder enforcement in jurisdictions where platforms are not established. The report recommends stronger EUâlevel coordination, possibly through the European Commissionâs pilot dialogues, to ensure consistent application of the Services Directive and to support member states in proportionate, evidenceâbased regulation.
Key Findings for Sustainable Housing Policy
- STRs contribute to housing unaffordability primarily in dense, touristâheavy urban cores.
- Professionalisation of the market (multiâlisting operators) amplifies supply pressures.
- Light or intermediary regulatory approaches can balance tourism benefits with housing protection, but strict caps or bans are needed where STR density exceeds local âhousing stressâ thresholds.
- Reliable, granular dataâfacilitated by Regulation 2024/1028âare essential for proportionate measures and for monitoring longâterm impacts on rent levels and displacement.
Recommendations for Policymakers
- Strengthen enforcement capacity and allocate resources for dataâdriven monitoring.
- Ensure that national registration schemes align with the EU regulation and include verification mechanisms to reduce false selfâdeclarations.
- Promote crossâborder cooperation with platforms, possibly revisiting the âcountry of originâ rule to enable timely takedown orders.
- Encourage local authorities to adopt a mix of marketâaccess and marketâoperation tools tailored to specific housingâstress zones, while preserving tourismâs economic contributions. By integrating these evidenceâbased measures, EU policymakers can mitigate the adverse housing effects of shortâterm rentals while supporting sustainable, inclusive urban development across the continent.

